Correlation Between Benchmark Holdings and Cipher Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both Benchmark Holdings and Cipher Pharmaceuticals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Benchmark Holdings and Cipher Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Benchmark Holdings plc and Cipher Pharmaceuticals, you can compare the effects of market volatilities on Benchmark Holdings and Cipher Pharmaceuticals and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Benchmark Holdings with a short position of Cipher Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Holdings and Cipher Pharmaceuticals.

Diversification Opportunities for Benchmark Holdings and Cipher Pharmaceuticals

0.0

Correlation Coefficient

Benchmark Holdings  Cipher Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between Benchmark and Cipher is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Holdings plc and Cipher Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Pharmaceuticals and Benchmark Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Benchmark Holdings plc are associated (or correlated) with Cipher Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Pharmaceuticals has no effect on the direction of Benchmark Holdings i.e., Benchmark Holdings and Cipher Pharmaceuticals go up and down completely randomly.

Pair Corralation between Benchmark Holdings and Cipher Pharmaceuticals

Assuming the 90 days horizon Benchmark Holdings plc is expected to under-perform the Cipher Pharmaceuticals. But the pink sheet apears to be less risky and, when comparing its historical volatility, Benchmark Holdings plc is 1.87 times less risky than Cipher Pharmaceuticals. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Cipher Pharmaceuticals is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  316.00  in Cipher Pharmaceuticals on July 25, 2025 and sell it today you would earn a total of  733.00  from holding Cipher Pharmaceuticals or generate 231.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Benchmark Holdings plc  vs.  Cipher Pharmaceuticals

Benchmark Holdings plc

Risk-Adjusted Performance

Weakest

Over the last 90 days Benchmark Holdings plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Benchmark Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Cipher Pharmaceuticals

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Cipher Pharmaceuticals are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Cipher Pharmaceuticals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Benchmark Holdings and Cipher Pharmaceuticals

The main advantage of trading using opposite Benchmark Holdings and Cipher Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Holdings position performs unexpectedly, Cipher Pharmaceuticals can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cipher Pharmaceuticals will offset losses from the drop in Cipher Pharmaceuticals' long position.

The idea behind Benchmark Holdings plc and Cipher Pharmaceuticals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.